Question 1
What is consumer surplus in a market?
Question 2
Which formula correctly expresses producer surplus in a perfectly competitive market?
Question 3
Suppose the demand curve is given by $Q_d = 100 - 2P$ and the supply curve is $Q_s = 20 + 3P$. What is the equilibrium price in this market?
Question 4
If a price ceiling is set below the equilibrium price, what is the likely effect on consumer surplus and producer surplus?
Question 5
In a market with no externalities, what does the total surplus represent?
